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Earnings Bloodbath? I’m going live tomorrow at 11:30 EST to share what Walmart and McDonald’s earnings could mean for your portfolio… and a third stock that many traders are overlooking. Claim a free RSVP here.
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Wednesday, March 5th
“It’s just a job. Grass grows, birds fly, waves pound the sand. I beat people up.”
-Muhammad Ali
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Markets Today
🌏 Asia-Pacific: Up
🇪🇺 Europe: Up
🇺🇸 United States: Up
🛢️ Oil: Down
⚡Crypto: Up
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Major Market Events
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Tesla sales fall 76% in Germany amid Musk’s political baggage
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President Trump preps markets for ‘a little disturbance’ on tariffs
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US mortgage rates near three-month low in boost to demand
🤔 My Thoughts
New data revealed that private sector hiring slowed significantly in February and fell short of Wall Street’s expectations.
On Wednesday, fresh data from ADP showed the private sector added 75,000 jobs in February, far fewer than economists’ estimates of 140,000 — and significantly lower than the 186,000 jobs added in January.
January’s number of job additions was revised up from a prior reading of 183,000. February’s data marked the largest month-over-month decline in private payroll additions since March 2023.
Most analysts are talking about how this could be a sign of the economy losing steam…
But we’re thinking it could be part of a trend that will be much more disruptive and long-lasting…
The beginning of concrete evidence that AI is squeezing the job market and leading to less hiring.
AI is already writing legal contracts and helping people with their taxes… high-paying jobs that could shrink dramatically as AI only improves from here.
To be frank about it, we use AI every day in our office, to do everything from running scanners on stock charts, to making images for our newsletters, to pulling research as we test different trading strategies.
Now we always need smart people managing the AI, and double-checking the research, and interpreting it with a critical eye…
And we’re always looking to grow our team of ambitious and smart human employees.
But the dirty truth is this: jobs that we might have hired a graphic designer or research assistant for in the past… well, AI is quickly taking over those roles.
And we’re sure that if it’s happening here, it’s happening all over the place.
This doesn’t mean that things are hopeless, but it does make it even more important to have income and wealth generation tools that aren’t tied to a job.
